Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Latest News

      Gateway Warns of Sales Shortfall

      Written by

      eWEEK EDITORS
      Published January 8, 2002
      Share
      Facebook
      Twitter
      Linkedin

        eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

        PC maker Gateway Inc. disclosed Monday that it expects to post a fourth-quarter profit, before taxes and one-time charges, as it had previously predicted, but warned that its sales will fall far short of Wall Streets expectations.

        The direct-order computer maker, which hasnt posted a profit in more than a year, said unit sales for the last three months of 2001 were down 15 percent sequentially, based on preliminary data. The company will officially report its earnings Jan. 24.

        The drop in PC sales, however, was partially offset by a 14 percent increase in average selling prices, Gateway said, with unit sales averaging $1,660 during the fourth quarter, compared with $1,460 the previous quarter.

        Gateway, which recently relocated its headquarters from San Diego to less costly office space in nearby Poway, Calif., said Monday that it now expects to report revenue of approximately $1.16 billion for the quarter.

        Market analysts polled prior to Gateways announcement had been projecting quarterly revenue of $1.39 billion and a loss of a penny per share (excluding one-time charges), according to Thomson Financial/First Call.

        “Our fourth-quarter performance shows were making solid progress on our strategy of delivering integrated technology solutions,” Gateway Chairman and CEO Ted Waitt said in statement issued along with the preliminary data Monday.

        “Its clear that a significant portion of market demand was at the very low end of the PC market in the fourth quarter, driven largely by aggressive pricing and promotions,” he said. “We stayed focused on our strategy and targeted higher-end customers during the holiday selling season, which allowed us to meet our previous guidance of returning to profitability, our primary goal.”

        But the companys lower-than-expected sales represent a “significant revenue miss,” said market analyst Ashok Kumar of U.S. Bancorp Piper Jaffray in San Francisco, who expects the company will continue to struggle until it revamps its operations to dramatically bring down operating costs.

        “The inherent fixed costs of the Gateway Country Stores and managements inability to leverage the store assets to sell value-add IT services lend to an unsustainable business model,” said Kumar, adding that the computer maker will likely struggle to return to profitability over the next six months.

        “Its inability to stabilize revenues during the fourth quarter bodes poorly for the seasonally weak first half of the year,” he said.

        eWEEK EDITORS
        eWEEK EDITORS
        eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.

        Get the Free Newsletter!

        Subscribe to Daily Tech Insider for top news, trends & analysis

        Get the Free Newsletter!

        Subscribe to Daily Tech Insider for top news, trends & analysis

        MOST POPULAR ARTICLES

        Artificial Intelligence

        9 Best AI 3D Generators You Need...

        Sam Rinko - June 25, 2024 0
        AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
        Read more
        Cloud

        RingCentral Expands Its Collaboration Platform

        Zeus Kerravala - November 22, 2023 0
        RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
        Read more
        Artificial Intelligence

        8 Best AI Data Analytics Software &...

        Aminu Abdullahi - January 18, 2024 0
        Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
        Read more
        Latest News

        Zeus Kerravala on Networking: Multicloud, 5G, and...

        James Maguire - December 16, 2022 0
        I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
        Read more
        Video

        Datadog President Amit Agarwal on Trends in...

        James Maguire - November 11, 2022 0
        I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2024 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

        ×